International Finance Case Analysis

Description

The situation: OmniMedical is a $730M manufacturer of medical devices. It has manufacturing operations located in the UK, India, China and Bermuda. It sells domestically and in 14 international markets.

You are the CFO of OmniMedical based in Princeton, NJ. Brexit being emanate, you must assess the impact on your UK subsidiary, Bulldog Medical, and the impact on OmniMedical the British departure from the European Union will have.

Important data: Bulldog Medical sales £ 135M

Foreign Sales Breakdown: France £ 32M, Germany £ 36M, Switzerland £20M, Czech Republic £20M, Turkey £ 27M

Foreign Resources Purchased: US £ 25M, Belgium £ 15M, Germany £ 20M , Israel £ 10M

Revenue transferred to parent: £ 28m

Exchange Rate $ 1.00 = £1.29

Explain the possible exchange, economic and translation effects on Omni and Bulldog. What measures would you take in the short run? Do you have a long term strategy for this situation? You may want to do examine the individual relationships and effects.

International Business